I'll be starting on the 3rd of Jan. in a Straight Truck. I was at one of the EO workshops and I asked (should I take the next available load or pick and choose?) I got two different answers. It dosent matter where I go as long as I'm getting miles.Thank You for any input :9
Next Load
- Thread starter rjhawg
- Start date
RJ:
Welcome aboard.
Most of the Carriers pay a fixed per-mile rate so assuming you hold one of their leases, the mileage rate is not much of a factor for you. I think your most prominent considerations for starting your first run for your carrier will be: (a) Is the deadhead to the pickup a reasonable percentage of the paid miles? and, (b) Is the deadhead from your delivery point to your next anticipated pickup reasonable?
For example: A 200 mile deadhead to a pickup of a 300 paid mile run with another 100-200 mile deadhead back to the most likely area for your next load, would be a tough way to start your new endeavor. You'd probably do OK if your total deadhead is no more than a third of your revenue miles.
In reality, you'll probably take the first load offered just to please the carrier. This isn't necessarily a bad move if it will earn you money for all miles travelled. You'll eventually get a good handle on your expenses and your carrier's freight lanes.
Good luck
Welcome aboard.
Most of the Carriers pay a fixed per-mile rate so assuming you hold one of their leases, the mileage rate is not much of a factor for you. I think your most prominent considerations for starting your first run for your carrier will be: (a) Is the deadhead to the pickup a reasonable percentage of the paid miles? and, (b) Is the deadhead from your delivery point to your next anticipated pickup reasonable?
For example: A 200 mile deadhead to a pickup of a 300 paid mile run with another 100-200 mile deadhead back to the most likely area for your next load, would be a tough way to start your new endeavor. You'd probably do OK if your total deadhead is no more than a third of your revenue miles.
In reality, you'll probably take the first load offered just to please the carrier. This isn't necessarily a bad move if it will earn you money for all miles travelled. You'll eventually get a good handle on your expenses and your carrier's freight lanes.
Good luck
Packmule
Expert Expediter
RJHawg,
As I have heard it stated so many times before on this website, it has become words to live by. "You are first and formost a business owner, secondly you are a driver". Every run is an important business decision from a business stand point, therefore a run that is not profitable to you as a business is a loss and affects YOUR bottom line not the company you are leased to. They have other trucks and alternative ways to make profit on a load, You have only You and your Truck. Once you have accepted a non profitable run you have to live with it no matter how bad it affects your P&L, all the time knowing the company you took the run for made their Profit.
Now this is not to say we don't take runs that are not as profitable as we would like them to be, but at least they can post to the BLACK side of our P&L and keeps a cash flow coming in. Too many of these Marginal runs can have an adverse affect on the bottom line so there again YOU have to know when to say NO!
Most important is knowing what it cost to operate your truck (this means EVERYTHING, fuel, tires, repairs, fees, taxes, tolls, insurance, and always allow for unforeseen incidentals).
Break this down into a per mile figure, add the % margin of profit you need to operate at and this will give you a figure to compare the per mile offer you receive for a run.
We all want to see the Company we drive for to be strong and profitable in the market place which gives us some feel of job security and pride in the company we represent, But we can NOT afford to NOT do the same for OUR business.
Something I have also seen stated on this site and have made it a sort of motto..."Just say NO to cheap freight".
Well I guess I've rambled enough...hope maybe something I've said makes sense, Best of luck,
Dan
As I have heard it stated so many times before on this website, it has become words to live by. "You are first and formost a business owner, secondly you are a driver". Every run is an important business decision from a business stand point, therefore a run that is not profitable to you as a business is a loss and affects YOUR bottom line not the company you are leased to. They have other trucks and alternative ways to make profit on a load, You have only You and your Truck. Once you have accepted a non profitable run you have to live with it no matter how bad it affects your P&L, all the time knowing the company you took the run for made their Profit.
Now this is not to say we don't take runs that are not as profitable as we would like them to be, but at least they can post to the BLACK side of our P&L and keeps a cash flow coming in. Too many of these Marginal runs can have an adverse affect on the bottom line so there again YOU have to know when to say NO!
Most important is knowing what it cost to operate your truck (this means EVERYTHING, fuel, tires, repairs, fees, taxes, tolls, insurance, and always allow for unforeseen incidentals).
Break this down into a per mile figure, add the % margin of profit you need to operate at and this will give you a figure to compare the per mile offer you receive for a run.
We all want to see the Company we drive for to be strong and profitable in the market place which gives us some feel of job security and pride in the company we represent, But we can NOT afford to NOT do the same for OUR business.
Something I have also seen stated on this site and have made it a sort of motto..."Just say NO to cheap freight".
Well I guess I've rambled enough...hope maybe something I've said makes sense, Best of luck,
Dan